CITY OF ~ SAN CAPITAL OF SILICON VALLEY TO: HONORABLE MAYOR AND CITY COUNCIL SUBJECT: MEDICAL MARIJUANA ENFORCEMENT UPDATE FROM: Angelique Gaeta DATE: May, 20 Date INFORMATION The pul~ose of this memorandum is to provide the City with an update on the City s enforcement efforts as they pertain to medical marijuana establishments operating in San JosS. Background On September,20, the approved an ordinance amending Title 20 of the San Joss Municipal Code (Code) to establish land use regulations pertaining to medical marijuana establishments (hereafter, Land Use Ordinance); and, approved an ordinance amending Title of the Code to establish regulations pertaining to medical marijuana establishments (hereafter, Regulatory Ordinance). On October 28, 20, medical marijuana advocates filed a Petition for Referendum asking the to repeal the Regulatory Ordinance or put the ordinance to a vote of San Joss residents. On November 8, 20, the adopted an Urgency Ordinance amending the Land Use Ordinance so that it would become effective only if and when the Regulatory Ordinance took effect. On February, 202, the repealed the Regulatory Ordinance. As a consequence of the actions, medical marijuana collectives, cooperatives, dispensaries and delivery service businesses (hereafter,~ "Collective(s)") are not legal uses in the City of San JosS. Accordingly, since February, 202, the Administration has taken and continues to take enforcement action against any Collective operating in the City based on the priorities set by the. Those priorities include focusing first on those Collectives that create a public nuisance, fail to pay the Marijuana Business Tax (MBT)~ and fail to comply with State law distance requirements. Regardless of their legal status, all Collectives operating in San Jos~ are required to pay the City s MBT, currently % of gross receipts, pursuant to Chapter. of the San Jos~ Municipal Code. Payment of these taxes in no way legalizes business activities that are otherwise unlawful in the City.
HONORABLE MAYOR AND CITY COUNCIL May, 20 Subject: Medical Marijuana Enforcement Update Page 2 Since the Administration last provided an update to in an Information Memorandum dated January, 20, the City has received 2 complaints regarding Collectives operating in. San Jos. Following inspection of those facilities by Code Enforcement, those cases break down as more fully set forth below. For a complete list of Collectives currently operating, and/or possessing an MBT certificate, in the City, please refer to Attachment A. Public Nuisance Activities New Cases: Of the 2 complaints received by the City, three cases met the criteria for investigation of a public nuisance. In one case, Code Enforcement performed an inspection of the premises and found Code violations which included smoking at the facility and unpermitted building modifications2. After being contacted by Code Enforcement, the owner corrected the building Code violations and began the process to evict the tenant. Code Enforcement will continue to monitor the location parallel to the eviction proceedings and take appropriate action, as necessary. At a second location, Code Enforcement performed an inspection and identified several Code violations. Code Enforcement has since met with the property owner to discuss those violations. Finally, at a third location, Code Enforcement received a complaint of a large outdoor marijuana growing facility and is in the process of inspecting the premises. Ongoing Cases: On January, the Administration reported that no new public nuisance cases had been opened and discussed the conclusion of each remaining case. State Law - 00 Foot Distance From Schools Since January, there have been three complaints of Collectives operating in violation of State law distance requirements by having their principal place of business too close to a public schools. At each of the three locations, Code has notified the property owner that the tenant facility is within 00 feet of a school and must close. Each facility was scheduled to close by April 0, 20. Staff will follow up with these Collectives to ensure closure was achieved. 2 N. st Street 22 The Alameda. Lincoln Avenue 0 Story Road, 0 Story Road and 200 Tully Road
HONORABLE MAYOR AND CITY COUNCIL May, 20 Subject: Medical Marijuana Enforcement Update Page Marijuana Business Tax Pursuant to direction, the Finance Department (Finance) provides a comprehensive update regarding MBT collections in its quarterly financial reports. The next report is due to the Public Safety, Finance and Strategic Support (PSFSS) Committee later this month. The last comprehensive analysis was included in Finance s Second Quarter Financial Report presented to the PSFSS Committee on February, 20. A copy of that report can be found at: ~o seca. gov/d o cm~ae!~tc enter/view/222. Additionally, for recently released information regarding MBT collections please refer to Finance s Bi-monthly Financial Report presented to the PSFSS Committee on April 8, 20. A copy of that report can be found at: ht~ioseca.govidocumentcenterivie.w;i20. Modifications to Municipal Code: Per direction given at the Priority Setting session in October 202, the City Attorney s Office continues to work on an amendment to Title of the Code to specify nonpayment of City business taxes as a ground for declaring a public nuisance. This will assist the City in seeking injunctive relief from a court to close businesses that have failed to pay City taxes following the administrative tax assessment process conducted by the Director of Finance. The City Attorney s Office will place this ordinance on the June, 20 City agenda. Recent California Supreme Court Decision: On May, 20, the California Supreme Court decided City of Riverside v. Inland Empire Patients Health and I/Vellness Center, Inc. and confirmed local governments land use authority to regulate or ban facilities that distribute medical marijuana. In light of this ruling the Administration can be prepared to bring forward for consideration appropriate medical marijuana zoning and regulatory ordinances in the fall. /s/ ANGELIQUE GAETA ASSISTANT TO CITY MANAGER For questions please contact Angelique Gaeta, Assistant to the City Manager, at (08) -82. Attachment
San Jose Marijuana Business Tax List as of May, 20 (sorted by ) Saratoga Avenue; Ste South Bay Healing Center, Inc. San Jose, CA 2 Theraleaf Careness Cooperative 0 Saratoga Avenue; Ste D dba: San Jose Rehab Clinic San Jose, CA 2 Therapeutic Holistic Care 20 S. Winchester Boulevard. dba: Herbs SVVCC San Jose, CA 28 Viktorya s Medical Supply, LLC Stevens Creek Boulevard dba: Buddys San Jose, CA 0 Yerba Buena (dba: YB Saratoga) 2 Barrymore Drive H Distribution San Jose, CA dba: Yerba Buena - Saratoga I Total 0 Great Oaks Boulevard; Ste 202 South Bay CRC (Compassionate Relief Collective) 2 San Jose, CA 2 Total 82 Stockton Avenue All American Cannabis Club [A2-C2] San Jose, CA 0 E.Gish Road; Ste B Emerald Crossings Golden State Care Collective San Jose, CA 2 Galewood Court Larry, Daryl & Daryl (Formerly The Bud Barber) San Jose, CA 8 Commercial Street Leaf Lab 2 N. th Street; Ste 0 NorCal Care Zanker Road Palliative Health Center 0 Oakland Road, Suite B Pyramid Medicinal San Jose, CA Euphorabis Colman Avenue dba: Coleman Rx Club San Jose, CA 2 N. st Street E William Street, Ste. 20 Rehab20 San Jose Medicinal Group 2 S. st Street; Ste 220 San Jose, CA San Jose Sanative Sanctuary 8 E. Taylor Street. dba: Urban Sunset Non-Profit Collective Santa Cruz Naturally N. th Street; Ste SBCPA Commercial Street Sensi Herbal Care 2 Post Street San Jose, CA Silicon Valley Collective 2 East Gish Road SJCBC, LLC (San Jose Cannabis Buyers Club) 82 Stockton Avenue San Jose, CA Tree house Collective, Inc. Commercial Street dba: Tree house TriValley Wellness San Jose 8 S. st Street Yerba Buena (dba: Phoenix) 2 N. th Street CalCan Corp Total Elemental Wellness Charcot Avenue San Jose, CA Page
Gobias Collective 22 Fortune Drive; Ste A dba: Fortune San Jose, CA Harborside of San Jose 2 Ringwood Avenue dba: Harborside Health Center of San Jose San Jose, CA 2 O Toole Avenue Nirvana Wellness Center San Jose, CA 208 Bering Drive; Ste Y Ocean View Organics (OVO) San Jose, CA SCVCS, Inc. INC 20 O Toole Avenue dba: Papadon s 20 Collective - Dispenser,/ San Jose, CA South Bay Apothecary Collective, Inc. (SBAC) Concourse Drive San Jose, CA Ringwood Court; Unit 0 The Portal Herbal Health Collective San Jose, CA VMK, Inc. 88 Lundy Avenue #20 dba: Purple Lotus Patient Center San Jose, CA... Total Story Road Delta Health Center San Jose, CA 2 Modern Wellness Collective San Jose, CA " Natures Helpers - S. Capitol Avenue; # dba: Capitol Collective San Jose, CA 2 (Perviousl~/dba: Yerba Buena - Capitol) Total Lincoln Avenue All Bay Cooperative 22 The Alameda Amsterdam s Garden San Jose, CA 2 88 W. Julian Street ARC Healing Center Cooperative, Inc. The Alameda # Bigalow s Comopassinate Care Delivery Service San Jose, CA 2 Garden House Remedies 28 Alum Rock Avenue dba: Haze San Jose,CA S. Jackson Avenue California Care Collective Care Givers of San Jose Stockton Avenue San Jose, CA 2 0 S. Winchester Boulevard San Jose, CA 28 Compassionate Care Clinics 2 Meridian Avenue # San Jose, CA 2 Executive Choice, Inc. 2 W. San Carlos Street Dba: Platinum Clouds Collective San Jose, CA 2 Green Frontiers 82 The Alameda dba: SJ Patients Group San Jose, CA 2 Gi eenlight Management, Inc. Hamilton Avenue Ste B dba: SVCare San Jose, CA 2 La Vie MMX S. Bascom Avenue San Jose,,CA 28 MedMar Healing Center S.Autumn Street San Jose, CA Meridian Herbal Patients Co-op, Inc. (MHPC) Meridian Avenue San Jose, CA 2 Platinum Society Lincoln Avenue; # San Jose, CA 2 San Jose Apex Group, Inc. S. Bascom Avenue dba: San Jose Health Center San Jose, CA 28 dba: Imedz San Jose Organic Relief S. Bascom Avenue San Jose, CA 28 Page 2
SLM Collective Corp. 2 Stevens Creek Boulevard dba: Elixir San Jose, CA 28 Park Avenue Statewide San Jose, CA 2 dba: Cal Med Therapeutic Holistic Care W. San Carlos Street. dba: Herbs SWCC San Jose, CA 28 2 S. Monroe Street Celebuddy, Inc. San Jose, CA 28 dba: Yerba Buena - Valley Fair Yerba Buena (dba: YB Valley Fair) Total Bay Leaf Collective 2 Tully Road ~ (Formerly San Jose Bay Leaf) San Jose, CA 22 Better Health Group of San Jose, Inc. 2 Almaden Road dba: Revolution Health Center San Jose, CA 2 Blue Sky Care Center 0 Monterey Road Club (Formerly Deals Less) Monterey Road # San Jose, CA 0 Story Road Green Care Association San Jose, CA 22 Holistic Health Care Co-op (HHCC) 88 Tully Road; Unit SJ Holistic Remedies Cooperative S. th Street; Ste Magic Health, Inc. Monterey Highway; Ste 0 MediMarts, Inc. 8 Little Orchard Street San Jose, CA 2 MINT Alternative Healing 222 Senter Road Natural Herbal Pain Relief Parrott Street NC Systems 2 Stone Avenue; Suite dba: NC San Jose, CA 2 Patient to Patient Group #2 San Jose, CA 22 2 Tully Road, Ste San Jose Organic 88 Tully Road; Ste. 0 Serenity Collective 20 Senter Road Simply Chronic Healing Coop, Inc. 0 Story Road San Jose, CA 22 South Bay Natural Remedies 2 Daylight Way Story Wellness 22 Story Road, Suite 0 San Jose, CA 22 Therapeutic Holistic Care 282 San Jose Avenue dba: Herbs SWCC San Jose, CA 2 Yerba Buena (dba: YB Amber Pearl) 22 S. th Street YB Fire, Inc. dba: Yerba Buena - Amber Pearl Yerba Buena (dba: Yerba Buena Monterey) 8 Monterey Highway Lexan, Inc. dba:yerba Buena - Monterey Road Total 2 Country Club Parkway Alternative Natural Remedies San Jose, CA 8 8 DL (Deals Less) Collective 200 Tully Road San Jose, CA 22 8 Total 8 Page
2 S. Bascom Avenue 08 Collective Campbell, CA 008 S. Bascom Avenue #220 All American Cannabis Club [A2-C2] Campbell, CA 008 Garden House Remedies 8 Hillsdale Avenue; Ste A dba: Haze San Jose, CA 2 Greenlight Management, Inc. 2- S. Bascom Avenue dba: SVCare San Jose, CA 2 Non-Pro, Inc. 2 So Bascom Avenue dba: Medicinal Gardens Campbell, CA 008 South Bay Wellness Center 282 S. Bascom Avenue dba: Greenjeans Place (Formerly Mr. Nice Gu~ ) San Jose, CA 2 Yerba Buena (dba: YB Bascom) 20 Union Avenue H Distribution San Jose, CA 2 dba: Yerba Buena - Bascom Yerba Buena (dba: YB Blossom Hills) PearlAvenue " S & K Care San Jose, CA dba: Yerba Buena - Blossom Hill Total 8 Charter Park Drive; Ste Q A Better Way (Collective) San Jose, CA Canna Culture Collective, Inc Charter Park Drive dba: Canna Culture Collective (Cannabis Culture Collective) San Jose, CA 0 Thornwood Drive, Ste. Holistic Herbal Healers San Jose, CA 2 80 Charter Park Drive Purple Frost, Inc. San Jose, CA Snell Avenue South Valley Farmacy San Jose, CA 2 Total I (Mailing Address): John Bartolero PO Box N/A Freedom, CA 0 Delivery Service Total Total Active Marijuana Businesses Page